Under the Youth Jobs PaTH Program, an unemployed or disadvantage young person under 25 years will be paid an extra $200 a fortnight "incentive" on top of the usual income support payments to complete an internship of between four to 12 weeks.

Businesses partaking in the program will receive an upfront bonus of $1,000 for taking on an intern and get an additional $6,500 if the internship turns into a job.

"It's all about business working together in hand with young people and the community to ensure young people can get themselves into a position where they can get a job and they can keep a job," Treasurer Scott Morrison said on Monday.

"They can get an apprenticeship, they can get a traineeship, they can get a long-term job.

"Because once they have a job, they have choices. When they're on welfare, they don't have those choices."